Top Analyst Says Bitcoin Avoided Major Breakdown Despite Liquidations; Outlines Path to $50K

Bitcoin is once again encountering resistance at a crucial level. Despite this, the price is maintaining its support on shorter timeframes, specifically the 2-hour chart, where Bitcoin has managed to hold above a key support level. This support has prevented a major breakdown, even after the market saw significant liquidations. 

According to analyst Josh of Crypto World, the 4-day Bitcoin chart shows that the Super Trend indicator remains in the red, signaling a continuation of the bearish trend. This aligns with the 2-day chart, which also reflects a bearish pattern, marked by lower highs and lower lows. However, the analyst notes that even within a bearish trend, Bitcoin can experience temporary upward movements or sideways consolidations.

Currently, Bitcoin is forming a descending broadening wedge pattern. A breakout above the resistance level of approximately $58,500 would signal a potential bullish move, but this has not yet been confirmed. Until such a breakout occurs, the market remains without a clear bullish price target.

Understanding Important Price Levels:

In the daily chart, Bitcoin recently hit resistance between $60,000 and $61,000, previously a support area now acting as resistance. For a confirmed bullish breakout, Bitcoin needs to close above $61,000 on the daily chart. However, even if this happens, further resistance lies ahead, particularly around $63,000 and between $67,000 and $68,300.

In the short term, Bitcoin’s price is caught in a choppy sideways range between support around $56,000 to $57,000 and resistance between $60,000 and $61,000. If Bitcoin closes below $56,000, the next support levels are at $54,000 and between $51,000 and $53,000.

The Bitcoin liquidation heat map reveals liquidity above $61,200, extending to $62,000. Recent liquidations of short positions near $60,000 to $60,500 led to a short squeeze, pushing the price upwards. While there is some downside liquidity around $57,500 to $57,700 and $55,800 to $56,000, the majority of short-term liquidity remains above the current price.


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